Customs Dept in $1M legal battle

Press, 29 June 1985, Page 5

Customs Dept in $1M legal battle

PA Wellington The Customs Department is locked in a $1 million legal battle with an importer over the seizing of a large number of tents. The importer has disputed the grounds for the seizing and the department is going to court to settle the matter. While the tent issue is a civil matter, the department has also lodged its first prosecution since the inception of closer economic relations with Australia. A consignment of fur coats, valued at $19,300, was

found to be of Asian origin but the labels had been switched in Australia. Label-switching is only one of the problems facing the Customs Department as it works to police the agreement, which provides preferential duty rights. The department said it was having to make regular seizings of goods breaching the rules-of-origin stipulation. Under C.E.R., goods which qualify for preferential duty rights must have a 50 per cent Australian content. Goods which breach conditions include those of entirely foreign content.

those relabelled or repackaged in Australia before export to New Zealand, and those reassembled without a 50 per cent Australian content. Another category of goods which does not meet requirements is those which come from a genuine Australian manufacturing concern but do not have a minimum 50 per cent Australian content. According to the chief customs officer in charge of prosecutions, Ms Diane Wilson, the Customs Department also has to guard against breaches of importlicencing reauirements.